What Is Form 1099-G?
The 1099-G form is used by government agencies to report payments made to businesses or individuals to the Internal Revenue Service (IRS). This does not include wages. The most common use is to report unemployment compensation or tax refunds.
Who Receives Form 1099-G?
The 1099 G Form is sent to report the following payments:
Federal, state, or local governments file this form if they made payments of:
- Unemployment compensation.
- State or local income tax refunds, credits, or offsets.
- Reemployment trade adjustment assistance (RTAA) payments.
- Taxable grants.
- Agricultural payments.
They also file this form if they received payments on a Commodity Credit Corporation (CCC) loan.
What Is Contained On The Form 1099-G
The 1099 G form identifies the agency that made the payment(s) and the nature of those payments.
- Box 1: Unemployment compensation. Box 1 shows the total unemployment compensation (including Railroad Retirement Board payments) received this.
- Box 2: State or local income tax refunds, credits, or offsets. Box 2 shows refunds, credits, or offsets of state or local income tax you received.
- Box 3: Box 2 amount is for tax year. Box 3 shows the tax year for which the refunds, credits, or offsets in Box 2 were made. The box may be left blank if the refund, credit, or offset is for the current tax year.
- Box 4: Federal income tax withheld. Box 4 shows backup withholding or withholding requested on unemployment compensation, Commodity Credit Corporation (CCC) loans, or certain crop disaster payments.
- Box 5: RTAA payments. Box 5 shows reemployment trade adjustment assistance (RTAA) payments received.
- Box 6: Taxable grants. Box 6 shows taxable grants received from government agencies.
- Box 7: Agriculture payments. Box 7 shows taxable payments received from the U.S. Department of Agriculture (USDA).
- Box 8: Check if box 2 is trade or business income. Box 8 shows if the amount in Box 2 is related to an income tax that applies exclusively to income from a trade or business.
- Box 9:Market gain. Box 9 shows any market gain associated with the repayment of a Commodity Credit Corporation (CCC) loan (available only to farmers).
- Box 10a: State. Box 10 a shows the abbreviated name of the state.
- Box 10b: State identification no. Box 10b shows the state’s identification number.
- Box 11: State income tax withheld. Box 11 shows the amount of state income tax withheld.
The 1099 G form is available at the IRS site here.
Who Is the Form 1099-G Filed For?
The recipients of unemployment compensation, state or local income tax refunds, credits, or offsets; or one of the other listed government payments, will be sent a copy of Form 1099-G by Jan. 31 by the filing agency. Additionally, unemployment compensation copies may be available online at the state’s unemployment benefits website.
There are five copies of the 1099-G.
- The IRS receives Copy A
- The State tax department gets Copy 1
- The recipient receives Copy B and an additional copy
- Copy C goes to the payer or filing agency
You should consult your tax professional to understand any tax implications when receiving a Form 1099 G.